Check out this video with Rick Jusenius of Washington Realty Group and Jordan Mowrey of Goldwater Bank. They are discussing a fabulous new loan program called One Time Close Construction Loan Program. Check out the savings with this program.
Rick: Good morning. This is Rick Jusenius with Washington Realty Group and I have a very special guest joining us this
Jordan: I’m Jordan with Goldwater Bank in Lynnwood, Washington, it’s great to be here.
Rick: Oh, I really appreciate Jordan taking the time out of his busy day. You are a mortgage broker is that correct.
Jordan: Yes, we’re a direct lending bank.
Rick: A direct lending bank. So with today’s romping real estate market these mortgage brokers are staying pretty busy. And I heard rumbling about a one-time close. Could you elaborate on that?
Jordan: So the one time close is great for folks who want to build, you know, a dream home. They have their land picked out and in one transaction we can do the land acquisition as well as the financing for their home. So you know, if their is an existing property on there and they don’t care for but they love the area. They scrape and build their home. And it’s typically about a forty-five day close, so it’s just a real, it’s a much, much simpler than a two-time close, that you know that other folks are offering before this came.
Rick: So a two-time close, I guess the traditional process would be to pull out a loan to do your construction you build the house you get everything done and then you do another loan to then turn it into permanent 30 or 15 year 20-year financing. Is that what we are comparing this to?
Jordan: Basically, yes and that’s a long process. You know, that is a semblance of multiple transactions and they typically takes, you know it takes a little bit more time than is desired. So this is a very simple single transaction. Which makes it, you know, great for folks who wanna buy land and build their home. And it’s a very straightforward and simple process.
Rick: So with the one-time close you, you don’t have double closing costs?
Rick: You don’t have double loan origination fees?
Rick: And with the one-time close what type of a product is it. Is it a 20-year, 30-year fixed-rate at the end or how does that work, is an adjustable rate mortgage, is it a fixed rate mortgage, what, what is what is the mechanics?
Jordan: Okay, well you can go either FHA, well you know typically you can of course do a 15 or 20 or however long you want that to go. Or conventional, the benefit of going with the FHA, is that if it is a primary residence it’s just 3.5 percent down. If it’s a secondary residence it’s ten percent down. If it’s investment property… Where is the conventional the minimum will be 10 percent down for a primary.
Rick: So a couple of different options there. But you can lock in a fixed rate, it doesn’t have to be an ARM, it can be a fixed rate?
Jordan: Exactly. For the duration.
Rick: Well that sounds like a really great product and I mean there’s certainly a lot of folks out there that this would really fit a nice little niche for them. Save them some money and frustration in the long run. So, once again this is Rick with Washington Realty Group and Jordan with the Goldwater Bank. We really appreciate you taking the time this morning and we wish you all the very best.